Limited Liability Company (LLC)
A LLC can be formed with a minimum of two and a maximum of 50 persons whose liability is limited to their shares in the company’s capital. Companies with expatriate partners typically opt for this form of company. The voting rights in the company may not exceed 49 percent, profit and loss distribution, and the share in allocation of liquidation proceeds can be mutually agreed upon. LLCs can sell directly to the local market.
If the scope of the activities in the UAE is limited, a branch or representative office can be considered. Such an office would also need a local sponsor. However, the sponsor in this case does not gain any voting rights and the role is limited to dealing with local and federal government requirements.
Local & International Trade allowed
51% shareholding held by local U.A.E. national except for professional licenses, where 100% shareholding is allowed
L.L.C. allows you to do local trade and services. It is recommended for companies who want to pursue retail business. In addition to local trade it also permits global trade. A Dubai limited liability company (L.L.C.) is an ideal vehicle to use for entrepreneurs doing business within Dubai, the U.A.E. and internationally. With Dubai L.L.C., you still can own only 49% of the equity. However, you can do that and keep more than 49% of the profits. U.A.E. law allows L.L.C.s to come up with flexible, differential profit sharing arrangements. These can give you an enormous advantage, especially since the 51% local equity rule is quite inflexible in most cases. It’s not surprising, therefore, that the L.L.C. is the most popular form of business organization in U.A.E.
Benefits of Dubai L.L.C.
A Dubai L.L.C. offers unrivalled access to Dubai and the wider U.A.E. economy. Through a Dubai L.L.C., international entrepreneurs obtain Trade Licenses from the Dubai government. There are few restrictions on the activities of a Dubai L.L.C., and it is possible to obtain a license for all activities with the exception of banking, insurance and investment activities.
Through a Dubai L.L.C., investors obtain a strong physical presence in Dubai. Although cost effective office space is hard to find in, we offer solutions to meet every budget and specifications.
Incorporating a Dubai L.L.C. now faces no specific minimum capital requirements, after this formal requirement was abolished in the U.A.E.. Companies may or may not be subject to minimum capital requirements, dependent on the size, nature and goals of the business.
It is easy to open global corporate bank accounts following Dubai L.L.C. set up.